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Optimale Vertragsdifferenzierung in der Agrarumweltpolitik

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  • Glebe, Thilo W.
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    Abstract

    This article deals with the optimal differentiation of agri-environmental contracts based on a self-selection mechanism. The paper demonstrates that both economic efficiency and effectiveness of public expenditures can be increased, if a menu of combinations of farming practices and payments are offered. However, there is a trade-off between efficiency and effectiveness, since the optimal programme minimising government expenses does not simultaneously minimise farmers’ opportunity costs. A numerical example of differentiated agri-environmental contracts, aiming for the reduction of nitrogen fertiliser in wheat production, illustrates that efficiency and effectiveness gains can be substantial. Furthermore, it is shown that economic rents for agricultural producers do not necessarily shrink as a result of contract differentiation, if the latter aims for the minimisation of public expenditures.

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    File URL: http://purl.umn.edu/97185
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    Bibliographic Info

    Article provided by Humboldt-Universitaet zu Berlin, Department for Agricultural Economics in its journal German Journal of Agricultural Economics.

    Volume (Year): 55 (2006)
    Issue (Month): 4 ()
    Pages:

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    Handle: RePEc:ags:gjagec:97185

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    Keywords: agri-environmental policy; efficiency; adverse selection; mechanism design; self-selection; Agricultural and Food Policy; Environmental Economics and Policy;

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    1. Uwe Latacz-Lohmann & Carel Van der Hamsvoort, 1997. "Auctioning Conservation Contracts: A Theoretical Analysis and an Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 407-418.
    2. Andrew Moxey & Ben White & Adam Ozanne, 1999. "Efficient Contract Design for Agri-Environment Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 187-202.
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